Q3 QUARTERLY REPORT. Richards Packaging Income Fund. Quarter ended September 30, Report Contents

Q3 QUARTERLY REPORT Richards Packaging Income Fund Quarter ended September 30, 2017 Report Contents CEO s report to Unitholders... 1 Management s discussion and analysis... 2 Financial statements... 11 Notes to financial statements... 15

CEO S REPORT TO UNITHOLDERS September 30, 2017 Richards Packaging has been providing packaging solutions to small-and medium-sized North American businesses since 1912. Over this period Richards Packaging has developed into the leading packaging distributor in Canada, and the third largest in North America, with one of the most diverse product and service offerings available to product marketers. As expected, third quarter performance reflects a reversion to the long term exchange rates, as total revenue increased 2.4%, 3.8% organic growth offset by a U.S./Cdn. 3.2 strengthening of the dollar to 80, up 6 from the second quarter. Organic growth was above our outlook but in line with GDP growth in both Canada and the United States. Gross profit and EBITDA 1 as a percent of sales were similar to the first half at 17.8% and 13.5% respectively. EBITDA was up $0.4 million, or 4.7%, due to higher sales. Net income was up $1.0 million, or 2.6 per Unit, with higher EBITDA and no repeat of contingent consideration revaluation for the Healthmark acquisition and a higher mark-tomarket gain on exchangeable shares offset by increased income taxes. Nine month performance reflects strong total revenue growth of 3.7% due to organic revenue growth of 3.5% and a U.S./Cdn. 0.9 strengthening of the dollar to 77. EBITDA 1 was up $1.8 million, or 6.2%, due to higher sales volumes. Net income increased by $6.1 million, or 56.3 per Unit, when compared to the previous year as higher EBITDA and no repeat of contingent consideration revaluation for the Healthmark acquisition, a lower mark-to-market loss on the exchangeable shares and increased taxes. The $0.9 million of free cash flow 2 generated in the third quarter was deployed to pay down the debt by $1.0 million. We have set aside $1.3 million of cash to fund the taxes associated with the refinancing of the US dollar denominated intercompany notes. The Fund s leverage remained at 0.9x as it was at June 30, 2017. The Fund paid monthly distributions of 11 per Unit during the third quarter, which represented an annualized yield of 4.6% on the September 30 th closing price of $28.49 per Unit. The payout ratio 3 for the third quarter was 81%. The impact of the tax accrual for refinancing the intercompany debt was 17%. We appreciate the support of our customers, suppliers, employees and investors and will continue to execute on our commitments with the highest degree of quality, care and integrity. Gerry Glynn Oct. 26, 2017 Chief Executive Officer Richards Packaging Inc. 6095 Ordan Drive Mississauga, Ontario L5T 2M7 1

This management s discussion and analysis ( MD&A ) of Richards Packaging Income Fund for the third quarter should be read in conjunction with the attached condensed interim financial statements dated September 30, 2017, the second quarter report dated August 1, 2017, the first quarter report dated May 5, 2017, the 2016 Annual Report and the 2016 Annual Information Form both dated March 2, 2017. Results are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards ( IFRS ) on a consistent basis with the 2016 annual financial statements. Description of the Business Richards Packaging serves a wide customer base that is comprised of approximately 14,000 regional food, beverage, cosmetic, specialty chemical, pharmaceutical and other companies. The primary source of revenue is from the distribution of over 5,000 different types of packaging containers and related components sourced from over 600 suppliers and its three dedicated manufacturing facilities. Sales from these manufacturing facilities represent approximately 10% of the total revenues of Richards Packaging (2016 10%). In addition to providing its customers with a wide range of packaging solutions, Richards Packaging provides design and development services and comprehensive logistics management through 17 sales offices and one agency location. Financial Highlights Highlights of the overall performance for the third quarter include: Revenue up $1.8 mil., or 2.4%, due to organic growth of 3.8% offset by foreign exchange impact of 1.4% due to a 3.2 U.S./Cdn. increase to 79.8, EBITDA 1 up $0.4 mil., or 4.7%, representing 13.5% of sales, Current income taxes up $1.4 mil. mainly due to intercompany refinancing, Net income increased $1.0 mil. due primarily to revaluation of contingent consideration not repeating, higher EBITDA and a higher mark-to-market gain on exchangeable shares offset by higher taxes, Changes in non-cash working capital increased $2.2 mil. due to higher inventory ($1.6 mil.) and accounts receivable ($1.4 mil.) and lower accounts payable ($0.2 mil.) offset by lower prepaid expenses ($1.0 mil.), Free cash flow 2 of $0.9 mil. was utilized to pay $1.0 million of term debt. Leverage ratio of 0.9x remained the same as at June 30, 2017, Distributable cash flow 2 decreased by $1.1 mil., or 9.4 per Unit, mainly due to $1.3 million of taxes associated with the intercompany refinancing, which resulted in an 81% payout ratio 3, and Monthly distributions of 11 per Unit representing a 4.6% annualized return on the Sept. 30 th closing price of $28.49 per Unit. 2

This MD&A covers the three and nine months ended September 30, 2017 generally referred to in this MD&A as the third quarter and the nine months, respectively. The following table sets out selected consolidated financial information: ($ thousands) Qtr. 3 Nine months 2017 2016 2017 2016 INCOME STATEMENT DATA: Revenue 73,546 71,794 224,149 216,205 EBITDA 1 9,920 9,478 30,210 28,440 Diluted per Unit 84.8 81.1 $2.58 $2.43 Net income 5,190 4,147 12,445 6,314 Diluted per Unit 36.7 34.1 $1.15 $0.59 FINANCIAL POSITION DATA: Working capital 51,254 62,206 Bank debt 35,927 43,829 Debt/EBITDA 0.9 1.2 CASH FLOW STATEMENT DATA: Distributions 3,886 3,309 11,094 9,224 Diluted per Unit 33.2 28.3 94.9 78.9 Payout ratio 3 81% 56% 62% 52% Unit purchases 289 Debt repayment 1,000 6,000 3,000 Review of Operations Operations were approximately half in the United States ( Richards Packaging US ) and half in Canada. Approximately forty percent of sales are concentrated in Los Angeles, Reno and Portland and 40% in Toronto, Montreal, Winnipeg and Vancouver. Revenue increased by $1.8 million, or 2.4%, for the third quarter from the same period in 2016 due to organic growth ($2.7 million) reduced by the translation impact of Richards Packaging US, with the Canadian dollar strengthening by 3.2 to U.S./Cdn.$0.80 ($0.9 million). Revenue increased by $7.9 million, or 3.7%, for the nine months from the same period in 2016 due to organic growth of $7.5 million along with the translation impact of Richards Packaging US, with the Canadian dollar strengthening by 0.9 to U.S./Cdn.$0.77 ($0.4 million). 3

($ thousands) Qtr. 3 Nine months 2017 2016 2017 2016 Revenue.. 73,546 71,794 224,149 216,205 Cost of products sold 60,480 59,242 184,664 178,809 Gross profit 13,066 12,552 39,485 37,396 17.8% 17.5% 17.6% 17.3% Administrative expenses 3,054 2,893 9,045 8,733 Foreign currency loss.. 92 181 230 223 EBITDA 1 9,920 9,478 30,210 28,440 13.5% 13.2% 13.5% 13.2% Amortization 943 991 2,834 2,958 Financial expenses 661 665 1,720 1,957 Exceptional gains (259) 83 (259) Contingent consideration.. 1,500 5,500 Exchangeable shares loss (gain) (894) (156) 3,919 4,514 Share of income - Vision 1 (26) (39) (68) Income tax expense 4,019 2,616 9,248 7,524 Net Income 5,190 4,147 12,445 6,314 Cost of products sold (before amortization) for the third quarter and the nine months increased by $1.2 million and by $5.9 million from the same periods in 2016, respectively. Gross profit margins were similar to the first half at 17.8%. Resin price volatility did not have a material impact on margins as a result of management s practice of passing through increases and decreases to customers. Administrative expenses (before amortization) for the third quarter were $0.2 million higher and for the nine months $0.3 million higher from the same periods in 2016, respectively primarily due to the translation of expenses of Richards Packaging US. The foreign currency loss from operations resulted from exchange rate changes applied to our U.S. dollar denominated working capital position within our Canadian operations. EBITDA 1 for the third quarter and the nine months increased by $0.4 million, or 4.7%, and by $1.8 million, or 6.2%, from the same periods in 2016, respectively. As a percent of sales, EBITDA was at 13.5% for the third quarter and the nine months. Changes were a result of the factors referred to above. Amortization of $0.9 million for the third quarter and $2.8 million for the nine months was comprised of $0.6 million and $1.9 million respectively for intangibles assets amortization, which represents a charge for customer relationships and patents. Depreciation for capital assets was $0.3 million and $0.9 million for the third quarter and the nine months respectively, which annualized, is approximately Richards Packaging s normalized annual maintenance capital expenditure requirement. 4

Financial expenses were comparable for the third quarter compared to the same period in 2016 as credit card fees and higher interest rates were offset by lower term debt. Exchangeable shares mark-to-market loss (gain) reflects a $1.46 per Unit decrease during the third quarter to $28.49 and an increase of $3.70 per Unit for the nine months. Exchangeable shares monthly distributions were 9.35 per Share in the first quarter and 11 per share thereafter. Income tax expense increased $1.4 million for the third quarter and $1.7 million for the nine months compared to the same periods in 2016, respectively, with current tax increases due primarily to $1.3 million of taxes associated with the currency gain on refinancing of intercompany notes. Net income for the third quarter was $5.2 million and $12.4 million for the nine months, which represented 36.7 and $1.15 per Unit on a diluted basis, respectively. Distributable Cash Flow 2 The distributable cash flow definition excludes changes in working capital and capital expenditures for the expansion of the business, as they are necessary to drive organic growth and are expected to be financed by a $5.0 million revolving debt facility (currently undrawn) or free cash flow. Distributable cash flow 2 for the third quarter was $1.1 million lower and flat for the nine months compared to the same periods in 2016, respectively. Overall the decrease was mainly due to higher income taxes which was offset by higher EBITDA 1. Current income taxes for the third quarter increased $1.4 million from the same period in 2016 mainly due to the currency gain on the refinancing of intercompany notes. Free cash flow 2 of $0.9 million for the third quarter was deployed to repay $1.0 million of term debt. Monthly distributions paid of 11 per Unit for the third quarter represent a payout ratio 3 of 81%. Monthly distributions were increased in April by 1.65 from 9.35 per Unit and represent an annual yield of 4.6% on a $28.49 price per Unit at September 30, 2017. 5

($ thousands) Qtr. 3 Nine months 2017 2016 2017 2016 Cash provided by operating activities 5,475 7,809 19,546 21,892 Dividends - Vision Exceptional gains. (259) (259) Working capital changes 2,238 (567) 1,440 (1,502) Income tax payments 2,207 2,495 9,224 8,309 EBITDA 1 9,920 9,478 30,210 28,440 Interest 661 665 1,696 1,957 Current income tax 4,149 2,778 9,811 8,152 Maintenance capital 302 128 852 533 Distributable cash flow 2 4,808 5,907 17,851 17,798 Diluted per Unit 41.1 50.5 $1.53 $1.52 Distributions 3,886 3,309 11,094 9,224 Diluted per Unit 33.2 28.3 94.9 78.9 Payout ratio 3 81% 56% 62% 52% Free cash flow 2 922 2,598 6,757 8,574 Units outstanding (average) Diluted basis 000's 11,693 11,693 11,693 11,693 Liquidity and Financing Cash flows from operating activities Cash flow from operating activities for the third quarter was $5.5 million, down $2.3 million over the same period in 2016 primarily due to the increase in working capital. During the third quarter, working capital increased by $2.2 million mainly due to higher inventories of $1.6 million, higher accounts receivable of $1.4 million and lower accounts payable of $0.2 million offset by lower prepaids of $1.0 million. For the nine months, cash flow from operating activities was down $2.3 million primarily due to the increase in working capital and higher tax payments offset by higher profit from operations. Working capital increased $1.4 million as accounts receivable increased $0.9 million and accounts payable decreased of $0.7 million, offset by lower prepaids of $0.2 million. The financial structure of the Fund allows for maximum distributions of cash flow from operations to the Unitholders and exchangeable shareholders as outlined above in the distributable cash discussion. Actual distributions paid during the third quarter, including those declared for June 2017, were $3.9 million with $1.3 million declared for September, which was paid October 13 th. 6

Normal Course Issuer Bid On March 14, 2017, the Fund renewed the normal course issuer bid to purchase up to 200,000 Units prior to March 13, 2018. During the nine months, nil Units were purchased (2016 16,000 at an average price of $18.05 per Unit). Current income taxes Current income tax expense increased $1.4 million for the third quarter and $1.7 million for the nine months, which includes $1.3 million for the gain on refinancing of intercompany debt and $0.3 million of withholding taxes on dividends received from Richards Packaging US (2016 $0.3 million). Capital expenditures Maintenance capital expenditures for the nine months were $0.9 million mainly comprised of refurbishment of moulds. Expansion capital expenditures for the nine months were $0.4 million (2016 $0.8 million) primarily for the addition of manufacturing equipment for new customer programs. Financing activities Credit facilities include a $36.0 million term loan (2016 $44.0 million) with maturity on September 30, 2019 and up to $5.0 million in revolving debt to fund working capital expansion. The revolving and term loan facilities bear interest at BA s plus a premium of 1.25% to 1.80% or a prime rate plus a premium of 0.25% to 0.80%. During the quarter, $1.0 million was repaid (2016 nil). The credit facilities are subject to a number of covenants including the leverage ratio which is to maintain debt less than 2.75 times the trailing twelve months EBITDA 1. As at September 30, 2017, our leverage ratio was 0.9 times. Combined with cash flow from operations, management believes that adequate financing will be available for the foreseeable future 4. On July 31, 2017, Richards Packaging Canada refinanced the US denominated intercompany notes with maturity on July 31, 2022. Outlook 4 Management believes that the performance of Richards Packaging is on track to meet ongoing requirements for working capital, capital expenditures and to sustain monthly distributions to Unitholders at the current level through 2017. Organic revenue growth for the third quarter was slightly ahead of our second quarter outlook at 3.8%, and we expect this to reset back down to the historical 1-3% growth band for the fourth quarter in line with our outlook for GDP growth. The impact of exchange translation is expected to reduce revenue by $1.6 million for the fourth quarter at current exchange rates of U.S./Cdn. 79 7

versus U.S./Cdn. 75 for the same period in 2016. The sensitivity is $0.4 million for every 1 movement in the exchange rate. EBITDA 1 for the third quarter and nine months was $9.9 million and $30.2 million, up $0.4 million and $1.8 million against the same periods in 2016 respectively, and is expected to track above 13% of revenue for the fourth quarter. The impact of exchange translation is expected to be a reduction of $0.2 million for the fourth quarter at current exchange rates. The sensitivity is $0.05 million for every 1 movement. Current income tax expense is expected to decrease $0.1 million for the fourth quarter with decreases due to the impact of exchange translation offset by increases from organic growth. Maintenance expenditures will continue to be funded by cash flow from operations and is expected to be $1.2 million in 2017 with the additional $1.0 million for IT systems now earmarked for 2018. Distributable cash flow 2 sensitivity on an annual basis to foreign currency fluctuations is $0.03 million for every U.S./Cdn.1 movement. Cash on hand of $2.1 million has $1.3 million set aside to fund the income taxes payable. Distributable cash flow 2 from Richards Packaging US and Richards Canada s current tax profile are expected to allow for a full return of capital to Unitholders. Risks and Uncertainties Investment in Units involves risks inherent in the ordinary course of business of including: sustainability of customer and supplier relationships, financial stability of customers, lack of written customer and supplier agreements, competition from other packaging companies, the extent and duration of an economic downturn, patent and trademark challenges, inventory obsolescence, trade risks, resin price and exchange rate fluctuations, interest rate volatility, liquidity risks, income taxes and reliance on key personnel. For a detailed description of these and other risks and uncertainties facing investors in the Fund please refer to the 2016 Annual Information Form dated March 2, 2017. To management s knowledge, no significant changes to these risks and uncertainties have occurred in the nine months of 2017. Critical Accounting Estimates Preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions which affect the reported, and disclosure of, amounts for assets and liabilities as at September 30, 2017 and revenue and expenses for the period then ended. There have not been any significant changes in the critical accounting estimates of the Fund in the nine months of 2017, relative to December 31, 2016. For more information on critical accounting estimates, see the Management s Discussion and Analysis, the audited consolidated financial statements and the notes to the consolidated financial statements included in the Fund s 2016 Annual Report. 8

Disclosure Controls and Internal Controls over Financial Reporting There have been no changes in the Fund s internal controls over financial reporting during the nine months that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting. Cautionary Statements Additional information relating to the Fund is available on Richards Packaging s website at www.richardspackaging.com, SEDAR at www.sedar.com or TSX at www.tmx.com 1 Management defines EBITDA as earnings before amortization, exceptional gains, contingent consideration revaluation, financial expenses, unrealized losses and dividends on exchangeable shares, share of income Vision and taxes. EBITDA is the same as profit from operations as outlined in the annual financial statements after adding back amortization, exceptional gains and contingent consideration revaluation. Management believes that in addition to net income, EBITDA is a useful supplemental measure for investors of earnings available for distribution prior to debt service, capital expenditures and taxes. Management uses this measure as a starting point in the determination of earnings available for distribution to Unitholders and exchangeable shareholders. In addition, EBITDA is intended to provide additional information on operating performance. This earnings measure should not be construed as an alternative to net income or as an alternative to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. EBITDA does not have a standardized meaning prescribed by IFRS and therefore the method of calculating EBITDA may not be comparable to similar measures presented by other companies. 2 Management defines distributable cash flow, in accordance with Richards Packaging s credit agreement, as EBITDA 1 less interest, cash income tax expense, and maintenance capital expenditures. Free cash flow is distributable cash flow less distributions. The objective of presenting this measure is to calculate the amount which is available for distribution to Unitholders or exchangeable shareholders and to determine the amount available to fund increases in working capital or expansion capital. Investors are cautioned that distributable cash flow should not be construed as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity and cash flows. Distributable cash flow does not have a standardized meaning prescribed by IFRS and therefore the method of calculating distributable cash flow may not be comparable to similar measures presented by other companies. 3 Management defines payout ratio as distributions declared over distributable cash flow 2. The objective of presenting this measure is to calculate the percentage of distributions compared to the amount available for distribution. Payout ratio does not have a standardized meaning prescribed by IFRS. The method of calculating payout ratio may not be comparable to similar measures presented by other companies. 4 The Report to Unitholders and this MD&A contains forward-looking information within the meaning of applicable securities laws. The forward-looking information reflects management s current beliefs and expectations regarding the future growth, results of operations, performance and business prospects and opportunities of the Fund and Richards Packaging. We use words such as may, will, should, anticipate, plan, expect, believe, predict, estimate and similar terminology to identify forward-looking information. It is based on assumptions, estimates and analysis made by us in light of our experience and our perception of trends, current conditions and expected developments, as well as other factors we believe to be reasonable and relevant in the circumstances. Forward-looking information involves significant known and unknown risks, uncertainties and other factors which may cause our actual 9

results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. Readers should not place undue reliance on forward-looking information as a number of factors could cause actual events, results and prospects to differ materially from those expressed in or implied by the forward-looking information. The risks and uncertainties include, among other things, changes in customer and supplier relationships, competition in the industry, inventory obsolescence, trade risks in respect of foreign suppliers, fluctuations in foreign exchange and interest rates, product liability claims, reliance on key personnel, changes to applicable tax laws, as well as other risks and uncertainties, as more fully described in the 2016 Annual Information Form dated Mar. 2, 2017 available at www.sedar.com. While management believes the expectations expressed and the assumptions underlying same are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. In evaluating forward-looking information, readers should carefully consider the foregoing factors and various other factors which could cause actual results or events to differ materially from those indicated in the forward-looking information. Neither the Fund nor Richards Packaging assumes any obligation to publicly update or revise any such assumptions or any of the forward-looking information contained herein to reflect subsequent information, events, developments or changes in risk factors. Notice to Unitholders The attached consolidated financial statements have not been reviewed by the Fund s external auditors 10

STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME Unaudited For the three and nine months ended September 30 [Consolidated] Three months Nine months Cdn$ thousands Notes 2017 2016 2017 2016 Revenue 73,546 71,794 224,149 216,205 Cost of products sold 61,400 60,205 187,428 181,687 Administrative expenses 3,077 2,921 9,115 8,813 Foreign currency loss 92 181 230 223 Exceptional gains (259) (259) Contingent consideration revaluation 1,500 83 5,500 Profit from operations 8,977 7,246 27,293 20,241 Financial expenses 661 665 1,720 1,957 Exchangeable shares Mark-to-market loss (gain) (1,188) (423) 3,039 3,750 Distributions 294 267 880 764 Share of income - Vision 1 (26) (39) (68) Income before income taxes 9,209 6,763 21,693 13,838 Income tax expense (income) Current taxes 2 4,149 2,778 9,811 8,152 Deferred taxes 2 (130) (162) (563) (628) 4,019 2,616 9,248 7,524 Net income for the period 5,190 4,147 12,445 6,314 Basic income per Unit 3 47.6 38.2 $1.15 $0.58 Diluted income per Unit 3 36.7 34.1 $1.15 $0.58 Other comprehensive income (loss) (subsequently recyclable to net income) Richards Packaging US Currency translation adjustment (3,276) 702 (6,067) (4,690) Comprehensive income for the period 1,914 4,849 6,378 1,624 See accompanying notes Susan Allen Gerry Glynn Enzio Di Gennaro Chair Audit Committee CEO Richards Packaging Inc. CFO Richards Packaging Inc. 11

STATEMENTS OF FINANCIAL POSITION Unaudited As at September 30 and December 31 [Consolidated] Sept. 30 Dec. 31 Cdn$ thousands Notes 2017 2016 2016 2015 Current Assets Cash and cash equivalents 2,086 6,787 13,257 794 Accounts receivable 32,593 33,063 32,827 30,281 Inventory 45,744 48,517 47,791 59,439 Prepaid expenses and deposits 2,792 3,345 3,172 2,267 83,215 91,712 97,047 92,781 Current Liabilities (excluding debt) Accounts payable and accruals (27,985) (26,786) (29,562) (30,278) Income tax payable 2 (1,697) (583) (1,110) (740) Distributions payable (1,295) (1,103) (1,104) (870) Contingent consideration (10,439) Due to previous shareholder (984) (1,034) (961) (1,091) (31,961) (29,506) (43,176) (32,979) WORKING CAPITAL 51,254 62,206 53,871 59,802 Long-term Assets Plant and equipment 4,149 3,970 3,909 3,743 Investment - Vision 779 780 740 712 Intangible assets 15,008 17,902 17,459 20,376 Goodwill 83,376 85,360 86,326 87,613 103,312 108,012 108,434 112,444 Long-term Liabilities (excluding debt) Contingent consideration (7,500) (2,000) Deferred income taxes 2 (5,369) (6,284) 4,471 (6,191) (7,149) NET OPERATING ASSETS 149,197 156,434 156,114 163,097 Debt Term debt 35,927 43,829 41,854 46,883 Exchangeable shares - current 3 22,694 19,812 20,904 16,062 58,621 63,641 62,758 62,945 Equity Unitholders capital 3 26,644 38,845 35,802 47,828 Retained earnings 55,319 41,284 42,874 34,970 Accumulated other comprehensive income 8,613 12,664 14,680 17,354 90,576 92,793 93,356 100,152 CAPITAL 149,197 156,434 156,114 163,097 See accompanying notes 12

STATEMENT OF CHANGES IN EQUITY Unaudited For the three and nine months ended September 30 [Consolidated] Unitholders' Retained Cdn$ thousands Notes capital earnings AOCI a) June 30, 2016 41,887 37,137 11,962 90,986 Comprehensive income (loss) 4,147 702 4,849 Distributions (3,042) (3,042) September 30, 2016 38,845 41,284 12,664 92,793 June 30, 2017 29,845 50,129 11,889 91,863 Comprehensive income (loss) 5,190 (3,276) 1,914 Distributions (3,592) (3,592) Share conversion 391 391 September 30, 2017 26,644 55,319 8,613 90,576 December 31, 2015 47,828 34,970 17,354 100,152 Comprehensive income (loss) 6,314 (4,690) 1,624 Distributions (8,694) (8,694) Purchased for cancellation, net (289) (289) September 30, 2016 38,845 41,284 12,664 92,793 December 31, 2016 35,802 42,874 14,680 93,356 Comprehensive income (loss) 12,445 (6,067) 6,378 Distributions (10,407) (10,407) Share conversion 1,249 1,249 September 30, 2017 26,644 55,319 8,613 90,576 a) AOCI - Accumulated other comprehensive income (loss) reflects the foreign currency translation of the net investment in Richards Packaging US. See accompanying notes 13

STATEMENT OF CASH FLOWS Unaudited For the three and nine months ended September 30 [Consolidated] Three months Nine months Cdn$ thousands Notes 2017 2016 2017 2016 OPERATING ACTIVITIES Profit from operations 8,977 7,246 27,293 20,241 Add items not involving cash Plant and equipment depreciation 339 356 971 1,004 Intangible assets amortization 604 635 1,863 1,954 Contingent consideration revaluation 1,500 83 5,500 Income tax payments 2 (2,207) (2,495) (9,224) (8,309) Changes in non-cash working capital 4 (2,238) 567 (1,440) 1,502 Cash provided by operating activities 5,475 7,809 19,546 21,892 INVESTING ACTIVITIES Additions to plant and equipment (546) (302) (1,324) (1,304) Acquisition, contingent consideration (10,425) Cash used in investing activities (546) (302) (11,749) (1,304) FINANCING ACTIVITIES Repayment of term debt (1,000) (6,000) (3,000) Financial expenses paid (643) (640) (1,679) (1,930) Purchase of Fund units for cancellation 3 (289) Distributions to Exchangeable Shareholders (294) (267) (880) (764) Distributions to Unitholders (3,592) (3,042) (10,214) (8,460) Cash used in financing activities (5,529) (3,949) (18,773) (14,443) Net cash flow for the period (600) 3,558 (10,976) 6,145 Cash, beginning of period 2,818 3,213 13,257 794 Foreign exchange effect (132) 16 (195) (152) Cash, end of period 2,086 6,787 2,086 6,787 See accompanying notes 14

NOTES TO INTERIM FINANCIAL STATEMENTS Unaudited September 30, 2017 [Cdn$ thousands] 1. BASIS OF PRESENTATION These condensed interim financial statements of the Fund have been prepared in accordance with International Financial Reporting Standard [ IFRS ] IAS 34 Interim Financial Reporting. As such these statements do not contain all the explanatory notes, descriptions or accounting policies or other disclosures that can be found in the Fund s 2016 audited annual financial statements. The accounting policies used in the preparation of these condensed interim financial statements are consistent with the 2016 audited annual financial statements. 2. INCOME TAXES The income tax expense differs from the amount computed at statutory rates due to the various adjustments outlined below: Three months Nine months 2017 2016 2017 2016 Profit from operations 8,977 7,246 27,293 20,241 Financial expenses (661) (665) (1,720) (1,957) Contingent consideration revaluation 1,500 83 5,500 Income subject to income taxes 8,316 8,081 25,656 23,784 Statutory tax rate 26.7% 26.7% 26.7% 26.7% Income tax expense at statutory tax rate 2,220 2,158 6,849 6,351 Deferred income taxes 130 162 563 628 Current period adjustments Intercompany refinancing 1,281 1,281 Foreign tax differential (210) (225) (666) (662) Foreign rate differential 503 522 1,562 1,566 Withholding tax 250 157 250 270 Other items (25) 4 (28) (1) Current income taxes 4,149 2,778 9,811 8,152 3. UNITS AND EXCHANGEABLE SHARES Exchangeable shares mark-to-market loss reflects a unit price increase during the nine months ended September 30, 2017 of $3.70 to $28.49 per Unit. The impact on income per Unit of the mark-to-market loss and distributions to shareholders is antidilutive which reverts back to basic income per Unit. The calculation of the diluted income per Unit would yield $1.40 for the nine month period of 2017 [2016 $0.93]. 15

NOTES TO INTERIM FINANCIAL STATEMENTS Unaudited September 30, 2017 [Cdn$ thousands] Units Weighted Exchangeable Units Weighted Number outstanding basic average Shares diluted average December 31, 2016 10,846,578 10,846,578 846,435 11,693,013 11,693,013 Share conversion 33,000 (33,000) Units purchased June 30, 2017 10,879,578 10,879,578 813,435 11,693,013 11,693,013 Share conversion 13,787 (13,787) Units purchased September 30, 2017 10,893,365 10,893,365 799,648 11,693,013 11,693,013 nine months 10,868,921 824,092 11,693,013 4. ADDITIONAL CASH FLOW INFORMATION The net change in working capital consists of the following: Three months Nine months 2017 2016 2017 2016 Accounts receivable (1,402) (1,400) (939) (3,624) Inventory (1,581) 2,219 (62) 9,112 Prepaid expenses and deposits 957 1,053 246 (1,150) Accounts payable and accruals (212) (1,305) (685) (2,836) (2,238) 567 (1,440) 1,502 For the three and nine month periods, the foreign exchange translation impact excluded from the above was $1,393 loss [2016 $296 gain] and $2,533 loss [2016 $1,975] respectively. 16